“Should I buy a property?’ was the question on many Malaysians minds. Let’s just say I am not so sure because it really depends on we want for our first property. If we want the lowest price, the shortest distance to KLCC and hopefully a landed property, then the answer will be… ‘This property was sold XX number of years ago.’ Getting back to reality, it will be more likely pretty affordable price, not too far away or next to a Transit Oriented Development (TOD) and an acceptable size regardless of high-rise or landed. This is the reality, unless of course one earns half a million a year and does not simply spend the income, then the choices will become wider. Now, we look at the three findings highlighted by a survey by PropertyGuru Malaysia. Press release by PropertyGuru Malaysia in kopiandproperty.com
- 63% of Malaysians think the government could do more to make housing affordable
- High property prices, timing and financing are key challenges for home seekers
- More than half of Malaysians find it difficult to get their home loans approved and resort to withdrawing from their EPF savings for down payments
First one is the hope for the government to do more to make the housing affordable. Well, they are building 100,000 of those to be completed this year. May I understand if the size, the design and the location is what everyone could accept? If we are hoping that the government could build homes which are worth more than RM500,000 but subsidising it down to RM250,000 so that everyone could buy something they want (instead of need), then the answer is likely to disappoint you. Nope, I am not a spokesperson for the government, just speaking about reality…
Second one would be all the challenges which home seekers are facing. Please do read more. Please do view more properties. Please expand the choices. Truth is, price vs size versus location is always a compromise. Be savvy to this fact PLUS, understand that the property prices on a longer horizon do go up due to inflation. Thus, if we keep delaying it and then look back and said, ‘Aiya… I should have…’ Thus far, except for those developments which was unfortunate, majority of all properties will see price increases, it’s a matter of fast or slow. This is why it’s best to buy, stay and enjoy plus wait. Not wait and keep paying rental and make the owner richer…
Third one is about Malaysians finding it hard to get their loans approved. if we are over-stretching ourselves and still want the banks to approve the loan, I hope the bank does NOT approve the loan. Malaysia does not need a sub-prime crisis. A home is a HOME, do not look at it as a speculative thing. Plus, a slightly further home just to meet the home loan requirement in terms of prices will not kill us… It has not killed me thus far to stay an extra 10 minutes away from a home which I would want but may have to over-stretch and well may get my home loan application rejected. Taking out EPF savings for homes is fine but the amount is not likely to be a lot if we are talking about someone who’s just started working for a few years.
It’s great to want to own a home because we know this is compulsory. It’s better to temper the WANTS where the home specifications are concerned; size, location, features. Look at our needs. Think about WHY. Earlier article about WHY here. As for the generation thinking about renting as the best option, think a little further down the road. When we retire and the income stops, are we still happy to pay rental then? Look to the advanced markets. Look at their senior population. Some continue to work way past retirement age because… they needed to pay rental. Happy reading.
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